The client is a conglomerate based in the U.A.E, having presence in diverse businesses like steel, power, environment and polyethylene. The company was evaluating the option of setting-up a steel plant in Oman. The top management requested UC Strategy to answer the following key strategic questions to take a decision on entering the Oman market:
- Is there a demand-supply gap for steel products and in which value-chain segment? What capacity plant should be set-up based on the demand-supply gap?
- Is there a cost-advantage of setting-up a plant in Oman vis-à-vis U.A.E?
- What are the entry and exit barriers?
UC Strategy conducted a research for this project with the following processes:
- Landscaped the steel industry across all value chain components
- Conducted detailed desk and primary research and estimated the current and future market size and the likely demand-supply gap in each value chain component
- Finished products (Deformed bars, Structural steel and Pipes)
- Semi-Finished products (Billet)
- Identified segments where the client can evaluate setting-up a plant
- Analysed the impact of government policies and regulations on doing business in Oman
- Analysed the cost-advantage of setting-up a plant in Oman vis-à-vis U.A.E
- Defined parameters and concluded on the attractiveness of the locations Muscat and Sohar
UC Strategy recommended a strategy for the client and the likely future strategic business risks moving forward.